Hu Honua Bioenergy project moving forward after settlement

Hu Honua Bioenergy expects to resume onsite operations with a full team of employees and contractors before year-end, including final site preparation, delivery of specialized equipment and construction mobilization.

The accelerated activity comes after Hu Honua Bioenergy and Honolulu-based Hawaiian Dredging Construction Co. reached a settlement to resolve a contractual dispute between the parties related to the refurbishment of Hu Honua Bioenergy’s renewable energy facility in Pepeekeo. Specific terms of the settlement are covered by a confidentiality agreement.

“We are pleased to be back on course, moving forward with construction and to resume full site activity,” said John Sylvia, Hu Honua CEO. “As we have stated previously, there were a number of complicated issues across multiple parties that required time to resolve for the settlement; we appreciate Hawaiian Dredging Construction Co.’s patience and efforts in working through the challenges.”

Refurbishment activity, including survey and permitting work, has been underway for the final phase of construction, which is expected to be complete within 12 months, following full mobilization.

In late October, Hu Honua Bioenergy received two shipments of specialized equipment in Hilo — a custom re-injection system and air quality emission control operating system. Hu Honua Bioenergy designed a re-injection system for the brackish water to return to its original source after it has passed through the system’s condenser and cooled the turbine’s exhaust steam. The air quality system will maximize overall system efficiency and lower emissions beyond what is required by regulators.

Additional specialized equipment including fuel handling and the remaining emissions control equipment has been fabricated and is in route to Hilo from the mainland.

Hu Honua Bioenergy is refurbishing the former sugar mill power plant at Pepeekeo into a modern biomass electricity generation facility with advanced emission control equipment. Hu Honua Bioenergy will sell electricity to Hawaiian Electric Light Co. under a 20-year power sales contract. The Hu Honua Bioenergy facility will generate about 100 construction jobs during the refurbishment process and 30 permanent operational and maintenance positions once the project is online. Additionally, more than 130 indirect jobs in forestry, harvesting, hauling, and local service shops are expected to be generated in the local economy.